Packaged snacks company Mondelez (NASDAQ:MDLZ) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, with sales up 7.7% year on year to $8.98 billion. Its non-GAAP profit of $0.73 per share was 7.7% above analysts’ consensus estimates.
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Mondelez (MDLZ) Q2 CY2025 Highlights:
- Revenue: $8.98 billion vs analyst estimates of $8.86 billion (7.7% year-on-year growth, 1.4% beat)
- Adjusted EPS: $0.73 vs analyst estimates of $0.68 (7.7% beat)
- Adjusted EBITDA: $1.78 billion vs analyst estimates of $1.53 billion (19.8% margin, 16.1% beat)
- Operating Margin: 13%, up from 10.2% in the same quarter last year
- Free Cash Flow Margin: 0%, down from 5.5% in the same quarter last year
- Organic Revenue rose 5.6% year on year (2.5% in the same quarter last year)
- Sales Volumes fell 1.5% year on year (2.2% in the same quarter last year)
- Market Capitalization: $90.09 billion
“We posted accelerated top-line growth in Q2 2025 underpinned by strong pricing execution in our chocolate business and robust growth across the vast majority of our geographies,” said Dirk Van de Put, Chair and Chief Executive Officer.
Company Overview
Founded as Nabisco in 1903, Mondelez (NASDAQ:MDLZ) is a packaged snacks powerhouse best known for its Oreo, Cadbury, Toblerone, Ritz, and Trident brands.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years.
With $37.11 billion in revenue over the past 12 months, Mondelez is one of the most widely recognized consumer staples companies. Its influence over consumers gives it negotiating leverage with distributors, enabling it to pick and choose where it sells its products (a luxury many don’t have).
As you can see below, Mondelez’s sales grew at a decent 7.5% compounded annual growth rate over the last three years despite selling a similar number of units each year. We’ll explore what this means in the "Volume Growth" section.
This quarter, Mondelez reported year-on-year revenue growth of 7.7%, and its $8.98 billion of revenue exceeded Wall Street’s estimates by 1.5%.
Looking ahead, sell-side analysts expect revenue to grow 6.9% over the next 12 months, similar to its three-year rate. This projection is above the sector average and implies its newer products will help sustain its historical top-line performance.
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Volume Growth
Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there’s a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive.
To analyze whether Mondelez generated its growth from changes in price or volume, we can compare its volume growth to its organic revenue growth, which excludes non-fundamental impacts on company financials like mergers and currency fluctuations.
Over the last two years, Mondelez’s quarterly sales volumes have, on average, stayed about the same. This stability is normal as the quantity demanded for consumer staples products typically doesn’t see much volatility. The company’s flat volumes also indicate its average organic revenue growth of 6.4% was generated from price increases.
In Mondelez’s Q2 2025, sales volumes dropped 1.5% year on year. This result represents a further deceleration from its historical levels, showing the business is struggling to move its products.
Key Takeaways from Mondelez’s Q2 Results
We were impressed by how significantly Mondelez blew past analysts’ EPS and EBITDA expectations this quarter. We were also happy its revenue outperformed Wall Street’s estimates. On the other hand, its volumes shrank and its gross margin missed due to continued cocoa cost inflation. Overall, we think this was a decent quarter. The market seemed to be hoping for more, and the stock traded down 3.3% to $67.45 immediately following the results.
Should you buy the stock or not? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.